1.

An investor runs across Series I Savings Bonds at: Individual - Series I Savings Bonds (treasurydirect.gov) and is curious if they can earn arbitrage profits. What is your advice to them? (If yes, please provide the basic logic and set-up you would recommend; if no, please provide an explanation of why this will not work).

2.

Use: Countdown to FOMC: CME FedWatch Tool (cmegroup.com)

to compare and contrast how the Fed Funds Futures outlook from last fall has changed. Your manager has asked you to prepare a summary of rate changes the market is currently expecting that she can incorporate into her presentation next week. In addition, please provide a few ideas of things you should both keep an eye out for that may alter these numbers before her presentation.